Let us take the case of Aparna, who works for a popular bakery. Known for her insatiable curiosity and boundless enthusiasm for learning new recipes, techniques and ingredients, she thrives on attending workshops, experimenting with flavour combinations and delving into the nuances of pastry making. Despite her relentless pursuit of knowledge, Aparna’s output may not always match that of her colleague, Mark, who consistently churns out flawless pastries with precision and speed. Should the bakery reward Aparna, the perpetual learner, as generously as Mark, the top performer?

“While it may seem straightforward to reward top performers, a nuanced approach is required to ensure that the organisation thrives both in the present and in the long term,” points out Pankaj Lochan, CHRO, Navin Fluorine. It is crucial to assess the value employees generate for the organisation through their learning outcomes. For instance, if an individual is adept at acquiring knowledge but fails to apply it effectively in their work, resulting in stagnant output and negligible value addition, then their learning efforts may be futile.

“While it may seem straightforward to reward top performers, a nuanced approach is required to ensure that the organisation thrives both in the present and in the long term.”

Pankaj Lochan, CHRO, Navin Fluorine

“While both aspects hold significant value, finding the right balance between the two is crucial for fostering a motivated and innovative workforce,” emphasises Manish Majumdar, head-HR, Centum Electronics. While rewarding performance serves as a clear indication of an individual’s contribution to the organisation’s objectives, learning-based rewards, on the other hand, promote a culture of continuous improvement and personal development, fostering creativity and resilience within the workforce.

While performance-based rewards motivate employees to excel in their roles, driving productivity and efficiency, encouraging employees to acquire new skills, explore innovative ideas and adapt to changing industry trends is essential to stay competitive.

“Rather than viewing it as an either-or scenario, organisations can consider adopting a more holistic approach that recognises and rewards the symbiotic relationship between learning and performance.”

Sharad Verma, VP & CHRO, Iris Software

“Rather than viewing it as an either-or scenario, organisations can consider adopting a more holistic approach that recognises and rewards the symbiotic relationship between learning and performance,” suggests Sharad Verma, VP & CHRO, Iris Software. High performers who are also avid learners essentially future-proof themselves and the organisation. By continuously expanding their knowledge and skills, they not only maintain their current high levels of performance but also equip themselves to adapt and excel as business needs evolve.

Conversely, those who are great learners but struggle with performance may simply need more targeted coaching and development opportunities to translate their newfound knowledge into tangible results.

“While both aspects hold significant value, finding the right balance between the two is crucial for fostering a motivated and innovative workforce.”

Manish Majumdar, head-HR, Centum Electronics

However, solely focusing on one metrics can have its drawbacks. For instance, employees who actively seek knowledge and acquire new skills contribute to the organisation’s long-term success. Ignoring learning efforts may lead to stagnation and hinder innovation.

Similarly, while ensuring performance is relatively straightforward, with tangible outcomes such as sales targets achieved or projects completed on time, assessing learning is more challenging. “Unlike performance, which can often be quantified through metrics and KPIs, assessing learning outcomes can be more subjective and nuanced.  Determining the extent of learning and its direct impact on organisational success requires a structured framework and objective evaluation criteria,” asserts Majumdar. Objectivity is crucial in this process, as learning experiences can be subjective and difficult to evaluate uniformly.

Furthermore, the relevance of learning to one’s job role must be considered. While some learning directly enhances job performance, individuals may also seek knowledge outside their immediate responsibilities. Balancing these divergent learning paths is essential to ensure that learning efforts contribute meaningfully to organisational objectives.

To reward employees based on their learning capabilities, Lochan suggests three key criteria. First and foremost, it is crucial to assess the extent to which employees apply their learning to enhance their work and contribute positively to the organisation; mere acquisition of knowledge without value creation diminishes the significance of learning achievements. Secondly, it is essential to examine employees’ potential for growth beyond their current roles for succession planning and talent development. Lastly, emphasis should be placed on employees’ innovative capacity, as those who leverage continuous learning to drive innovation and spearhead breakthrough practices contribute significantly to the organisation’s long-term success.

Both aspects of employee development warrant appreciation, albeit within the context of their respective contributions to the organisation. Therefore, another approach to rewarding learning is to tie it directly to job-related activities and responsibilities. For instance, employees who acquire new skills or knowledge relevant to their roles can be given opportunities to apply and share their learning within the organisation. This may involve mentoring colleagues, leading training sessions, or participating in knowledge-sharing initiatives.

Another approach, as Lochan suggests, is “to categorise employees into quadrants based on their learning orientation and execution excellence.” In this framework, Quadrant C represents individuals who excel in both learning and performance, making them prime candidates for recognition and reward. However, the focus should not solely rest on this quadrant; rather, attention should be directed towards Quadrant D, where employees demonstrate a strong inclination towards learning but struggle to translate it into tangible results.

Instead of pitting learning against performance, organisations can implement a reward system that celebrates the virtuous cycle of learning enabling better performance, which, in turn, creates new learning opportunities. “This can involve offering personalised development plans, stretch assignments, or even job rotations to high-potential employees who demonstrate both a hunger for knowledge and the ability to apply it effectively,” asserts Verma.

Furthermore, a comprehensive approach to rewarding employees involves aligning incentives with both short-term achievements and long-term strategic objectives. Organisations can overcome the challenge of measuring learning and execution performance by adopting meaningful metrics such as learning agility, knowledge transfer, impact assessment, and 360-degree feedback. These metrics allow for effective assessment of employee development and ensure that rewards are distributed equitably based on both immediate contributions and long-term potential.

Whether to reward employees based on learning or performance is a question that necessitates a nuanced approach taking into consideration the value they bring to the organisation, their potential for growth, as well as their capacity for innovation. By striking a balance between recognising learning achievements and rewarding tangible results, organisations can foster a culture of continuous improvement and drive sustainable growth in the ever-evolving business landscape.

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The company, founded by Vikas Lachhwani and Tarun Sharma in October 2016, is a brand that adds caffeine to personal care products. Currently, it has a team of over 600 people and since the beginning of the brand, approximately 12 per cent of the team members are still with mCaffeine.

The ESOP is a way to appreciate and reward employees who have shown strong dedication to the mCaffeine brand, according to the company’s official statement. As a gesture of gratitude, the company will grant ESOPs to employees across seven different departments.

The company expressed its excitement about this move, stating that with more than 50 per cent of employees qualifying for ESOPs, it’s a fantastic gift for its valued team members as they step into the new year. The ESOP scheme is seen as a pathway to growth for both employees and the brand, creating opportunities for a shared and brighter future.

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Marico, based in Mumbai, is an Indian multinational enterprise that specialises in consumer goods and offers a wide range of products in the domains of health, beauty, and wellness. Marico maintains a significant presence in more than 25 nations across Asia and Africa.

The company now has more shares, going from 129,37,39,508 shares to 129,38,33,608 shares, and each share is worth Re. 1. This increases the total value of the shares from Rs. 129,37,39,508 to Rs. 129,38,33,608.

Additionally, all shares issued through the stock option exercise will have the same status as the company’s existing shares.

In August, Marico distributed 1,10,700 equity shares to employees via employee stock option plans (ESOP). It has allocated these shares at a face value of one rupee each to its eligible employees.

Marico is a very forward-thinking company, recognised for its distinctive culture of trust and transparency, that has gone unnoticed for more than three decades.

Consequently, even amid the pandemic, the employees remained highly efficient and, in fact, showed increased productivity while working remotely.

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Uno Minda is a manufacturer of proprietary automotive solutions and systems that supplies to original equipment manufacturers (OEM) as a Tier-1 supplier.

This allotment is a result of the grantees exercising their options under the Uno Minda employee stock options scheme (ESOP), 2019. The company made this announcement through a resolution circulated via an exchange filing.

As a result of the exercise of options under the Uno Minda employees stock option scheme, 2019, the company’s paid-up equity share capital has increased from Rs 114,63,68,444 to Rs 114,64,38,208, as per the Securities and Exchange Board of India (SEBI) regulations.

This information is in compliance with the provisions outlined in Regulation 30 of the SEBI listing obligations and disclosure requirements (LODR) regulations, 2015. This regulation pertains to the disclosure of events or information that could have a material impact on the company’s business, operations, or financial position and is intended to ensure transparency and timely dissemination of such crucial information to the public and investors.

It is important to note that the allotment of shares is not considered material to the company, as mentioned in the regulatory filing.

The company is currently in the process of seeking listings for these shares on the NSE and BSE stock exchanges.

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During a meeting held on the aforementioned date, the company allocated a total of 10,736 equity shares, each with a nominal value of Rs 5, to eligible employees who had previously exercised their stock options under the OFSS stock plan of 2014. This announcement was made through an official filing with the stock exchange.

Following this allocation, the company’s paid-up capital has been elevated to Rs. 433,067,855, comprising a total of 86,613,571 equity shares, each having a face value of Rs 5.

OFSS specialises in delivering comprehensive banking software solutions, encompassing cloud-based offerings, banking payment solutions, revenue management tools, cloud infrastructure services, and applications for financial services analysis.

Log 9 Materials announced a Rs 1.5 crore ESOP buyback programme for 17 employees, both long-serving and new, on 26 October, 2023. This follows a similar programme of nearly Rs 1 crore from the previous year. The company plans to make ESOP buybacks a regular practice in the years ahead, demonstrating their commitment to sharing their success with those who’ve contributed to their growth.

The company manufactures cutting-edge battery technology, with a primary emphasis on lithium-titanium-oxide batteries designed for electric vehicles (EVs). Log 9 Materials initially ventured into the market with graphene-enhanced products like air and oil filters before shifting its focus to the EV industry by introducing the RapidX battery range.

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In October last year, BoAt had managed to secure Rs 500 crore in funding from its existing investor, Warburg Pincus, and a new investor, Malabar Investments. This allowed BoAt to postpone its initial public offering (IPO) by 12–18 months, as it was well capitalised. During the final quarter of FY22, BoAt submitted its Draft Red Herring Prospectus (DRHP) to SEBI, receiving regulatory approval for a Rs 2,000 crore IPO.

Established in 2014, BoAt manages a portfolio of five brands, including BoAt itself, Redgear (acquired in 2020), Tagg (acquired in 2022), the wearable brand, Defy, and its proprietary personal care and grooming brand, Misfit. Strategic partnerships with global companies such as Qualcomm, one of BoAt’s shareholders, as well as Dolby, Dirac and others, have helped the company gain a strong hold in the audio and smart-wearable segments.

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As per an official exchange filing, the ESOP allotment committee granted 8,732 equity shares, each with a face value of Rs 10, on 13 October, 2023.

This allocation has resulted in the receipt of share application money amounting to Rs 87,320. Consequently, Coforge’s paid-up share capital has now increased to 615,56,919 equity shares, each with a face value of Rs 10, totaling Rs 615,569,190.

The company is currently in the process of finalising the necessary procedures related to the issuance and subsequent listing of these shares. It plans to submit the required documentation to the exchange in the near future to obtain approval for listing and trading.

Coforge employs a product-engineering approach and harnesses cloud, data, integration and automation technologies to transform its clients’ businesses into high-growth, intelligent enterprises.

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Nippon Life India Asset Management (formerly Reliance Nippon Life Asset Management), an asset management company has approved  equity share allotments under two ESOPs.

Effective 9 October 2023, these allotments increased the issued, subscribed and paid-up equity share capital of Nippon Life India Asset Management to 62,48,77,180 equity shares, each with a face value of Rs. 10. These 83,491 equity shares rank equally with the existing shares.

The ESOP allotment committee at Shriram Finance, an Indian financial service has approved the allocation of 1,00,189 equity shares, each with a face value of Rs 10, to 311 eligible employees. These employees exercised their fresh stock options under SFL ESOS 2023 (No. 1). Consequently, the paid-up share capital of Shriram Finance increased from Rs. 3,75,34,70,830 to Rs. 3,75,44,72,720.

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The company is committed to fostering an entrepreneurial work culture among its employees. It empowers team members by granting them ownership of their respective work domains, which has resulted in nearly zero attrition. It further emphasised that this year’s ESOP buyback program is a testament to these efforts. 

Founded in 2016 by Pawan Gupta and Rahul Namdev, Betterhalf is an app-based matrimony startup that leverages artificial intelligence to connect individuals in search of life partners. The company proudly claims to have facilitated over 100 weddings. Betterhalf boasts of a network of 30,000 partners on its platform, including 750 venue partners in Bengaluru. The startup is committed to expanding its presence in the Indian wedding market and has plans to launch in Delhi in the near future.

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On July 27, Zypp Electric, an innovative Indian startup operating in the burgeoning electric vehicle (EV) space, made a significant announcement that grabbed the attention of both employees and industry experts. The company revealed its employee stock ownership plan (ESOP) buyback program, becoming the first-ever EV-as-a-service platform in the country to introduce such a scheme.

The ESOP buyback program is an exciting development for Zypp Electric and its workforce. This initiative reflects the company’s commitment to recognising the valuable contributions of its employees and ensuring they actively participate in the organisation’s success. Under this plan, Zypp Electric has set aside a substantial amount of INR 1.5 crores to buy back ESOPs from 15 eligible employees.

Zypp Electric’s CEO and co-founder, Akash Gupta, expressed his enthusiasm for the initiative, stating that every team member plays a pivotal role in the company’s growth. By providing an opportunity for employees to realise the value of up to INR 50 lakh individually, the startup aims to reward their hard work and dedication. This move is expected to foster a sense of ownership and further motivate the workforce to contribute to the company’s continued progress.

Since the announcement, Zypp Electric has witnessed an encouraging response from its employees. Many more team members have shown interest in availing the ESOP opportunities, demonstrating their faith in the company’s vision and growth potential.

With a current fleet of over 16,000 electric scooters and a dedicated workforce of approximately 500 employees, Zypp Electric continues to be a trailblazer in the Indian EV industry. The company’s unwavering focus on sustainability, innovation, and customer satisfaction has contributed to its rapid growth and widespread popularity.

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This decision was disclosed through an official exchange filing, indicating the company’s commitment to rewarding its workforce with ownership in the company.

The equity shares allotted to the employees have a nominal or face value of Rs 5 each. This means that each share represents a stake in the company valued at Rs 5, which will enable employees to benefit from the company’s performance and growth.

As of 3:30 pm IST on July 17, 2023, the market value of ICICI Securities’ shares was recorded at Rs 615.10. This price reflected a slight increase of 0.40 percent from the previous trading session. Such upward movement in share price indicates positive market sentiment and confidence in the company’s future prospects.

The issuance of these equity shares to employees is a strategic move by ICICI Securities to align the interests of its workforce with that of the company’s shareholders. Through this ESOP, employees have the opportunity to become shareholders themselves, fostering a sense of ownership and motivating them to contribute to the company’s growth and success.

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The granting of equity shares to employees through the ESOP programme signifies the company’s recognition and appreciation of their valuable contributions. By offering this opportunity, ICICI Prudential aims to strengthen the bond between the organisation and its employees, fostering a sense of shared ownership and alignment of interests.

In the financial market, ICICI Prudential shares have been performing favorably. At 3:30 pm IST on July 13, 2023, the shares were trading at Rs 601.75, reflecting an increase of 0.78 percent. This positive trend not only reflects the market’s confidence in the company’s prospects but also enhances the potential value of the equity shares allotted to employees through the ESOP scheme.

Overall, the allotment of equity shares to employees by ICICI Prudential through their ESOP initiative highlights the company’s commitment to recognising and rewarding its workforce. 

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The options can be exercised within a maximum of five years from the date they vest.
The ESOPs will vest as follows:
a) 25% after one year from the grant date
b) 25% after two years from the grant date
c) 25% after three years from the grant date
d) 25% after four years from the grant date

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As one of the first employees to join the company when it was founded in 2012, Clint has consistently demonstrated exceptional performance and unwavering commitment to Webandcrafts. After 10 years of dedicated service, the company’s management team felt it was only fitting to recognize his contributions with this special gift.

According to Vice President Jilu Joseph, “Webandcrafts is committed to recognizing and rewarding the hard work and contributions of our employees. Clint Antony is a prime example of an individual who has gone above and beyond, and this gift is our way of showing our gratitude and appreciation for his dedication and loyalty over the past decade.”

With this gift, Webandcrafts hopes to inspire and motivate all its employees to continue to strive for excellence and to always put their best foot forward.

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Ramesh Marand, CEO and director of Tridhya Tech, addressed the employees during the event and spoke about the company’s employee recognition program. He emphasised the importance of recognising the efforts of employees and expressed his belief that the wealth created by the company should be shared with those who have helped to create it.

One of the 13 honoured employees expressed their gratitude for the recognition and praised the company for its appreciation of their hard work. The employee stated that it feels great to be acknowledged for their contributions and be rewarded for their efforts. They also noted that the company consistently demonstrates its appreciation for its employees and their contributions to the growth of the company.

Overall, the event was a testament to Tridhya Tech’s commitment to its employees and their hard work. The company recognises the value that its employees bring to the organisation and is dedicated to supporting their growth and success.

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The company had earlier this month raised Rs 5,000 crore by issuing 50,000 unsecured redeemable long-term bonds.

The shares of ICICI Bank closed at Rs 890.40, up by 0.21 per cent, on December 22, 2022.

ICICI Bank is a leading private sector bank in India that offers net banking services and personal banking services like accounts and deposits, cards, loans, and so on. It is headquartered in Mumbai.

The bank offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialised subsidiaries in the areas of investment bankings, life and  non-life insuarance,  venture capital, and  asset management.

This financial institution has a network of 5,275 branches and 15,589 ATMs across India and has a presence in 17 countries.

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Additionally, the programme aims to help participants develop a variety of abilities, raise their level of responsibility and accountability, even while enhancing their general performance.

EnKash believes that it’s crucial to ensure a fair assessment of employees’ efforts, and hence, the Bonus is a tracker-based system. This system will allow the team members to keep track of how many and what sort of initiatives they took while moving beyond their call of duty. The Company has also established an Attitude Bonus Reward Committee to evaluate the entries sent by the employees. Cash prizes are given to the winners on a monthly basis. Both freshers and experienced employees get the opportunity to earn the bonus.

The ‘Attitude Bonus’ is EnKash’s “attempt to reward its team members who choose to go an extra mile, to ensure that the organisation’s and its customers’ needs are met”.

Calling this an “exemplary step from the HR perspective to normalise rewarding employees beyond-KRA initiatives in the job market,” Naveen Bindal, co-founder, EnKash, said, “While skills and talent are important, the team’s attitude is the key factor that eventually defines the growth and the success of the organisation. In a start-up ecosystem, employees are bound to wear multiple hats and work beyond their KRAs, as they are essentially building the company along with the founders. Employees with proactive mindsets and a high degree of ownership are assets to any company, and hence, are bound to grow in their individual capacity as well.

The reward programme is expected to promote an environment of intrapreneurship, proactive initiative-taking, and self-growth among employees. The Beyond Call of Duty initiative takes into account instances such as employees utilising additional skills and expertise to make a significant contribution to departments other than their own, such as a member from the operations’ team giving a breakthrough idea to the design team; volunteering for tasks beyond their own KRAs to expedite the work; proactively training a fellow co-worker or a team mate, and so on.

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The importance of rewarding and recognising employees cannot be overstated. A 2018 survey conducted by Achievers tellingly reveals that 63 per cent of employees who felt recognised were unlikely to look for a new job. Today, as organisations work to attract and retain talent, the balance of power has shifted towards employees, making the human connection intrinsic to the employee experience.

A 2021 survey by Gartner found that 85 per cent of employees felt it was important to be seen as a person or individual and not just as an employee. This is where hyper-personalisation of employee rewards and recognition plays a critical role. However, the pertinent question here is, to what extent can employee rewards and benefits be personalised.

What are the possible pros and cons of implementing hyper-personalised rewards and recognition (R&R) programmes? Human resource leaders provide some illuminating answers.

“Collective feeling of preferential treatment being meted out to a few co-workers is not a disadvantage of hyper-personalisation, but it calls for exercising caution”

Jayant Kumar, head – HR, Adani Cement

Creating value for the employee

According to Shailesh Singh, senior director & CPO, Max Life Insurance, employees should be given complete autonomy to decide how they wish to be rewarded and remunerated. “Doesn’t make sense to keep giving rewards which do not create value for the customer – in this case, the employee,” asserts Singh.

“If a company offers employees membership to a premium club located far away from their home, will it even be useful? They may prefer membership of a gym closer to home instead,” he adds, underlining the importance of personalising benefits.

Speaking of the merits of personalised rewards for employees, Singh says that the biggest is making sure workers feel appreciated, valued and recognised, leading to increased employee satisfaction and loyalty.

As far as the benefit for the organisation is concerned – other than improved retention – Singh cites a superior connect with the employees. “It becomes a win-win situation for both. Besides, generations are changing fast nowadays. With such rapidly-changing generational tastes, customising benefits helps organisations stay young and in touch with their employees,” he points out.

Kavita Dasan, vice president – people practices, ABP Network, enunciates a similar view. “Employee rewards and benefits must be personalised,” she stresses. “Since every company is dealing with a multi-generational workforce, customisation helps encourage employees across generations,” she offers.

“The rewards strategy should be so designed that the idea of earning a reward assumes universal appeal. It should not be seen as swinging in favour of only one section of employees”

Kavita Dasan, vice president – people practices, ABP Network

“Additionally, personalising R&R builds meritocracy and helps the organisation become more performance driven. It also aids in improving employee engagement, boosting morale and motivation”.

Dasan suggests creating a gamified R&R programme that creates healthy competition among employees, while giving them due credit and acknowledgement. “There can be a polling model in which the achievements of various employees are subjected to a vote. So, even as only one employee gets the actual award, it is a rewarding experience for all the others whose work is showcased and thus accorded due recognition,” she advises.

Role of technology

Technology plays an undeniable role in customising employee benefits.

“The R&R programme should be sustainable, fair and transparent. Technology plays a vital role in ensuring this fairness and transparency. Moreover, rewards and benefits must be timely,” Dasan notes, adding that tardy recognition is as good as no recognition.

Speaking at length on the role of technology, Jayant Kumar, head – HR, Adani Cement, says that it is technology that has enabled rewards and benefits to be administered in a customised fashion. “There used to be a structured reward system in the past, but nowadays there is customisation for individual employees, for instance, annual pay-outs or allocation of shares. All this information is stored in the human resources management system (HRMS), easing and simplifying the process,” he explains, pointing out that digital technology helps connect data points and analyse them.

Right rewards strategy

While hailing the trend of personalising rewards, Dasan warns of the possible demerits if it is not done right. She goes on to explain the importance of a rewards strategy in this regard. “The rewards strategy should be so designed that the idea of earning a reward assumes universal appeal. It should not be seen as swinging in favour of only one section of employees,” she points out, suggesting that the wrong rewards strategy may easily lead many to feel that the reward is not worth working for. “This can result in employee dejection,” she opines, underlining a potential demerit of hyper-personalising R&R.

Kumar also points out how customising rewards for worthy employees may easily create a sense of disenchantment among others. “This collective feeling of preferential treatment being meted out to a few co-workers is not a disadvantage of hyper-personalisation, but it calls for exercising caution. It has to be managed well,” says Kumar, emphasising the importance of transparency in the system to generate a sense of trust and equitability among the larger workforce.

Alluding to the cons of personalising employee benefits, Singh cites compliance, digital flexibility, and cost to the company as key conditions that must be met in order to make the process truly advantageous. “One, the personalisation should be compliant with the laws of the company and not cause any further complications. Two, it should be digitally adaptable and not create any additional manual work. Three, it should not cost the company more,” explains Singh.

“Generations are changing fast nowadays. With such rapidly-changing generational tastes, customising benefits helps organisations stay young and in touch with their employees”

Shailesh Singh, chief people officer, Max Life Insurance

Welcome trend

Describing hyper-personalisation as a ‘welcome trend’, Kumar says that it helps an employee play to their individual motivations and strengths. “The value of talent has risen in recent years. Today, a lot of emphasis is being placed on drivers of individual motivation and aspiration,” he opines. “Earlier, it was assumed that everyone wanted to be awarded in public. Scientific research now suggests that many people would rather be rewarded in private,” he informs, referring to differing employee preferences.

So, what’s the best way to customise employee rewards?

In Dasan’s view, it is a good idea for organisations to create a reward basket. She cites the example of her own organisation, where different types of rewards have been created, including spot awards as well as monthly, quarterly and annual awards. “We have also customised the benefits basket so as to give employees the freedom to choose. Therefore, people can opt from shopping vouchers, extra cash, extra points – that can be redeemed at a later stage – an annual vacation, or even dinner at a 5-star hotel,” enunciates Dasan, detailing the initiative.

Ultimately, according to Kumar, there is a need to design the customised employee rewards programme in a way that allows the best contributor to be rewarded, while encouraging everyone to play to their individual strengths. “The rules of the game, in other words, should be visible to and understood by all,” he says, conclusively.

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